U.S. Mortgage Rates Continue to Climb in Early May, Fifth Consecutive Week

U.S. Mortgage Rates Continue to Climb in Early May, Fifth Consecutive Week

Residential News » Washington D.C. Edition | By David Barley | May 6, 2024 8:00 AM ET

Right in the middle of prime springtime home buying season

Based on the most recent survey from Freddie Mac's Primary Mortgage Market Survey, the average rate for a 30-year fixed-rate mortgage in the U.S. stood at 7.22 percent as of May 2, 2024.

Sam Khater

"The 30-year fixed-rate mortgage increased for the fifth consecutive week as we enter the heart of Spring Homebuying Season," said Sam Khater, Freddie Mac's Chief Economist. "On average, more than one-third of home sales for the entire year occur between March and June. With two months left of this historically busy period, potential homebuyers will likely not see relief from rising rates anytime soon. However, many seem to have acclimated to these higher rates, as demonstrated by the recently released pending home sales data coming in at the highest level in a year."

Freddie Mac News Facts

  • The 30-year FRM averaged 7.22 percent as of May 2, 2024, up from last week when it averaged 7.17 percent. A year ago at this time, the 30-year FRM averaged 6.39 percent.
  • The 15-year FRM averaged 6.47 percent, up from last week when it averaged 6.44 percent. A year ago at this time, the 15-year FRM averaged 5.76 percent.

Last Wednesday, the Federal Reserve stressed that inflation has remained persistently high in recent months and indicated it has no intention to lower interest rates until it has "greater confidence" that price increases are slowing down sustainably toward its 2% target.

The Fed made this announcement following its latest meeting, during which it maintained its key rate at approximately 5.3%, its highest level in two decades. Several reports indicating higher-than-expected prices and economic growth have recently challenged the Fed's belief that inflation was gradually easing. The combination of elevated interest rates and ongoing inflation has also emerged as a potential threat to President Joe Biden's re-election bid.

"In recent months," Chair Jerome Powell said at a news conference, "inflation has shown a lack of further progress toward our 2% objective."

"It is likely that gaining greater confidence," he added, "will take longer than previously expected."


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